Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

HR Amends Credit Facility

Healthcare Realty Trust Inc. (HR - Free Report) has inked an amendment for its $700 million unsecured revolving credit facility. The move will help the company lower its cost of capital as well as extend the maturities.

In particular, Healthcare Realty’s amendment to the revolving credit facility will lower the pricing of the facility to 1.40% over LIBOR, with a 0.30% facility fee, from 1.50% over LIBOR, with a 0.35% facility fee.

Moreover, the maturity date of the facility gets extended to Apr 14, 2017, from Oct 14, 2015. This may be further extended, as per the company’s choice until Apr 14, 2018 but for a fee equal to 0.15% of the total commitments.

The move is a strategic fit and provides Healthcare Realty adequate financial flexibility. Moreover, this real estate investment trust has a well-diversified tenant base, with the bulk of its tenants in various outpatient specialties that have distinct demand and revenue sources.

As a result, the company has a steady revenue stream, minimizing Medicare and Medicaid reimbursement risks, unlike that of the senior housing facilities, where tenants historically have a larger private pay component.

Healthcare Realty is scheduled to release its fourth-quarter 2012 results on Feb 20, 2013. The Zacks Consensus Estimate for the fourth-quarter FFO (fund from operations) is currently pegged at 31 cents per share.

The company currently holds a Zacks Rank #3 (Hold). However, another REIT stock that is performing better and is worth a look is Terreno Realty Corp. (TRNO - Free Report) , carrying a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.